Looks like we’re gonna say “bye bye” to this…

The Delaware Public Service Commission is deeming Blue Water Wind’s proposed off shore wind farm “not in the public interest” after the company changed it’s original proposal during negotiations with Delmarva Power and Light.

After an informed and deliberative review of the Term Sheets, Staff cannot recommend that the State Agencies direct Purchase Power Agreements (“PPAs”) based on any of the long-term generation proposals, including the backup arrangements. Although Staff would like to be part of the effort to pioneer offshore wind power to take control of Delaware’s energy future, such a recommendation is — at this time — not in the public interest and is not consistent with the underlying principles of the Electric Utility Retail Customer Supply Act of 2006 (“EURCSA”).

Staff believes that approval of Bluewater’s revised project is not in the public interest because:

• The revised project, which includes a commercially unreasonable pricing escalator, imposes significant additional risk as well as cost on Delmarva’s SOS ratepayers;

• Bluewater shifts the project’s risk associated with cost increases during construction to Delmarva SOS ratepayers, and thus, the ratepayers – not Bluewater – assume full responsibility for any losses incurred with project delay and/or failure;

• The delayed timing of the revised project results in additional cost and exacerbates the price risk;

• Staff expected that the negotiations would yield a lower price for the wind project, on a per customer kWh basis, but rather the negotiations resulted in a more expensive, less favorable project than the original bid proposal; and

• Other jurisdictions, such as New York and Texas, have determined that offshore wind facilities are not an acceptable solution to energy needs based on unreasonable expense and uncertainty with regard to project viability.

Moreover, the bidders and Delmarva have not complied with the State Agencies’ direction to craft Term Sheets that include the material aspects of the long-term power arrangements because several crucial issues remain in dispute in all three proposed Term Sheets.

And “hello” to another century or so of this…

It bothers me that the PSC is deeming the offshore wind farm “not in the public interest” and using because other states have as one of their reasons. This looks bad for the people crossing their fingers for a clean source of energy for the state, but the PSC has left the door open….

You can read what Tommywonk has to say about this latest twist HERE.

This entry was posted on Tuesday, October 30th, 2007 at 12:28 am and is filed under Beaches, Energy, Environment, Global Warming, Health, Local Politics, Millsboro, National Politics, Nature, Science, Sussex County, Technology, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.